Annual Report 2006-2007 - Cafcass

21 Related party transactions
Cafcass is an executive non-departmental public body that
is sponsored by the Department for Education and Skills
(DfES). DfES as such is regarded as a related party. During
2006–07, Cafcass had various material transactions with
DfES, including the receipt of £104.373m grant funding
from DfES.
There were no related party transactions with Board
members or the Executive Team during the year other than
those associated with remuneration for normal duties.
22 Events after Balance Sheet date
There have been no events after the Balance Sheet date
requiring an adjustment to the financial statements. The
financial statements were authorised for issue on the 19th
July 2007 by Anthony Douglas (Accounting Officer).
23 Financial instruments
Financial Reporting Standard 13, Derivatives and Other
Financial Instruments, requires disclosure of the role
which financial instruments have had during the period
in creating or changing the risks an entity faces in
undertaking its activities. Because of the largely nontrading
nature of its activities and the way in which
government departments are financed, Cafcass is not
exposed to the degree of financial risk faced by business
entities. Moreover, financial instruments play a much
more limited role in creating or changing risk than would
be typical of the listed companies to which Financial
Reporting Standard (FRS) 13 mainly applies. Cafcass has
very limited powers to borrow or invest surplus funds, and
consequently financial assets and liabilities are generated
by day-to-day operational activities and are not held to
change the risks facing Cafcass in undertaking
its activities.
As permitted by FRS 13, debtors and creditors that mature
or become payable within 12 months from the Balance
Sheet date have been omitted from the disclosures.
Fair values
There is no difference between the book value and fair
value of any of Cafcass’ financial assets and liabilities as at
31st March 2007.
Liquidity risk
Cafcass’ net revenue resource requirements are financed
by resources voted annually by Parliament, just as its
capital expenditure largely is. Cafcass is not therefore
exposed to significant liquidity risks.
Interest rate risk
Cafcass is not exposed to significant interest rate risk.
Foreign currency risk
Cafcass is not exposed to any significant foreign
currency risk.
66 | Cafcass Annual Report and Accounts 2006–07